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City approves ordinance to refinance bond issue

Earlier this week, members of city council gave their unanimous approval to Ordinance 265 regarding refinancing the city's 2006 bond issue. Tom Lynch, the city's bond counsel, was present at the meeting and explained that General Obligation Bonds in the amount of $4,870,000 will be issued for a funding program to re-fund a series of General Obligation Notes already held by the city. "The net present value savings is north of $247,000 and so it is exceeding what [Henry Sallusti, of RBC Capital Markets, the underwriter for the city's standing obligations] has shown you in the past by a good $25,000 to $30,000," Lynch said. Lynch informed council members that, in order to move forward, they had to enact the legislation to adopt the debt, authorize the bond form itself, and then file with the state Department of Community and Economic Development (DCED).He added that, in order to approve the ordinance, council members were required to hold a roll call vote. Several documents also needed to be signed that evening in order to lock in the interest rates.